Tata Consultancy Services said today (April 03, 2012) that a U.S. court has allowed two former employees to proceed with a class-action lawsuit against the Indian company over a wage dispute.
US District Court Judge Claudia Wilken permitted the lawsuit which alleges that TCS and its parent Tata Sons wrongfully withheld wages, thus violating employment contracts and California labor laws, according to a statement issued by the lawyers representing the former employees.
The former employees, who were sent to the US from India to work on software projects, alleged that TCS and Tata Sons violated job contracts by forcing all non-US citizen employees to sign over their federal and state tax refunds to the company and by deducting their Indian salary from their compensation, and depriving its employees in California of earned wages.
The court certified one national class of plaintiffs, consisting of non-U.S. citizens who worked at the company between 2002 and 2005, to sue for breach of employment contracts. It certified a separate class of employees to sue for violating California labor laws.
TCS, India's largest software exporter by sales, said in an emailed statement that the court order is 'only on one procedural matter and does not address the merits of this case.'
'TCS continues to believe that when this matter concludes, the court will find that the plaintiff's claims are without any merit,' the statement added.
TCS is not the only Indian company to face legal problems in the US.--its biggest outsourcing market.
Rival Infosys is facing a lawsuit and an inquiry by a US Senate subcommittee for alleged violation of work visas. US authorities are investigating whether Infosys abused a temporary business visa program to get employees into the country for longer-term assignments.
Infosys has denied any wrongdoing and said that it is cooperating with the grand jury's investigation.
....more info
US District Court Judge Claudia Wilken permitted the lawsuit which alleges that TCS and its parent Tata Sons wrongfully withheld wages, thus violating employment contracts and California labor laws, according to a statement issued by the lawyers representing the former employees.
The former employees, who were sent to the US from India to work on software projects, alleged that TCS and Tata Sons violated job contracts by forcing all non-US citizen employees to sign over their federal and state tax refunds to the company and by deducting their Indian salary from their compensation, and depriving its employees in California of earned wages.
The court certified one national class of plaintiffs, consisting of non-U.S. citizens who worked at the company between 2002 and 2005, to sue for breach of employment contracts. It certified a separate class of employees to sue for violating California labor laws.
TCS, India's largest software exporter by sales, said in an emailed statement that the court order is 'only on one procedural matter and does not address the merits of this case.'
'TCS continues to believe that when this matter concludes, the court will find that the plaintiff's claims are without any merit,' the statement added.
TCS is not the only Indian company to face legal problems in the US.--its biggest outsourcing market.
Rival Infosys is facing a lawsuit and an inquiry by a US Senate subcommittee for alleged violation of work visas. US authorities are investigating whether Infosys abused a temporary business visa program to get employees into the country for longer-term assignments.
Infosys has denied any wrongdoing and said that it is cooperating with the grand jury's investigation.
....more info